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How Electricity Prices are Determined ?

  1. Core Components of Electricity Pricing Electricity prices reflect the full cost of delivering power , which includes: Generation Costs : Fuel (coal, gas, oil), renewable integration, carbon pricing, and plant operating costs. Transmission & Distribution (T&D) : Infrastructure maintenance, grid modernization, and loss recovery. Regulatory & Policy Costs : Taxes, subsidies, renewable obligations, and cross-subsidies. Retail Add-ons : Metering, billing, and customer service charges. [eia.gov] , [energy.con...lation.com] 2. Market Structures and Price Formation Regulated Markets : Prices set by regulators using cost-plus or performance-based tariffs . Deregulated Markets : Prices formed via wholesale bidding in power exchanges and bilateral contracts. Wholesale vs Retail : Wholesale prices depend on marginal cost of generation , fuel prices, and grid constraints. Retail prices include wholesale cost + T&D + taxes + fixed charges. [nyiso.com] , [callmepow...

What is Energy Transition?

 Here is the comprehensive overview on the energy transition took place in the energy and power sector and how it is inter-connected with the other commodities is as follows: 1. What is Energy Transition? Energy Transition refers to the global shift from fossil fuel-based energy systems (coal, oil, gas) to renewable and low-carbon sources such as solar, wind, hydro, and green hydrogen. It involves structural changes in production, distribution, and consumption of energy to achieve sustainability, reduce greenhouse gas emissions, and meet climate targets like those in the Paris Agreement . Key pillars include: Decarbonization : Reducing CO₂ emissions. Energy Efficiency : Optimizing consumption. Energy Access & Security : Reliable and equitable supply. Technological Innovation : Smart grids, storage, AI-driven optimization. [en.wikipedia.org] , [ibm.com] , [diversegy.com] 2. History of Energy Transition Energy transitions have occurred throughout human history: ...

Green Hydrogen Tenders in India as on 2025

 Here’s a comprehensive update on Green Hydrogen tenders in India as of 2025: ✅ 1. Overall Tender Landscape Total tenders in 2025 : 465 live tenders for green hydrogen projects across India, including production plants, transmission systems, and infrastructure development. (Source: TenderDetail ) ✅ 2. Key Government Initiatives National Green Hydrogen Mission (NGHM) : Launched in Jan 2023 with an outlay of ₹19,744 crore. Target: 5 million metric tonnes per annum (MMTPA) by 2030. Incentives under SIGHT Scheme : Mode-1 Tranche-I : 4.12 lakh tonnes/year awarded to 10 companies. Electrolyser manufacturing : 1,500 MW/year capacity awarded to 8 companies. Subsidy: ₹50/kg (Year 1), ₹40/kg (Year 2), ₹30/kg (Year 3). (Source: PIB ) [pib.gov.in] ✅ 3. Major Auctions & Winners Second Auction under SIGHT (Jan 2025) : Capacity: 450,000 tonnes/year . Winners: Reliance Green Hydrogen, L&T Energy, Waaree Clean Energy, AM Green , Oriana Power (lowest incentive ...

What is Fiscal Responsibility and Budget Management (FRBM) Act and its guidelines ?

Here’s a comprehensive timeline and current status of the Fiscal Responsibility and Budget Management (FRBM) Act and its guidelines , from inception to the latest updates: 1. Origin and Purpose Proposed: 2000 by Finance Minister Yashwant Sinha. Enacted: 2003; implemented from July 2004 . Objective: Ensure fiscal discipline and macro-economic stability . Reduce fiscal deficit , revenue deficit , and public debt . Enhance transparency in fiscal operations. Initial Targets: Eliminate revenue deficit by 2008–09. Reduce fiscal deficit to 3% of GDP by 2008–09. 2. Key Features of FRBM Act Mandates presentation of: Medium-Term Fiscal Policy Statement Macroeconomic Framework Statement Fiscal Policy Strategy Statement with Union Budget. Prohibits borrowing from RBI except under exceptional circumstances. Introduced escape clause for ...

Challenges, Solutions, and Collective Responsibility of Air Pollution

Understanding Air Pollution Air pollution refers to the presence of harmful substances in the atmosphere that degrade air quality and pose risks to health, ecosystems, and climate. It is a global challenge with local consequences, affecting urban and rural environments alike. As on 2025, the following are the list of challenges and methods to minimize the pollution levels and development of the action plan for the CHANGE Major Pollutants in the Atmosphere Particulate Matter (PM2.5 & PM10) – Tiny particles that penetrate lungs and bloodstream. Nitrogen Oxides (NOx) – Emitted from vehicles and industrial processes. Sulfur Dioxide (SO₂) – From burning fossil fuels and smelting. Carbon Monoxide (CO) – Incomplete combustion of fuels. Ground-Level Ozone (O₃) – Formed by chemical reactions between NOx and VOCs. Volatile Organic Compounds (VOCs) – From solvents, paints, and fuels. Greenhouse Gases (CO₂, CH₄) – Contribute to climate change. Methods to Minimize Air Pollution ...

Function of Central Electricity Regulatory Commission (CERC) of India

  Overview The Central Electricity Regulatory Commission (CERC) is a statutory body constituted under the Electricity Regulatory Commissions Act, 1998. It plays a pivotal role in regulating the tariff of central generating stations, interstate transmission of electricity, and promoting competition, efficiency, and economy in the electricity sector in India. Mandate CERC's mandate includes regulating tariffs for central sector utilities, facilitating interstate transmission, ensuring grid discipline, and promoting open access in transmission. It also advises the government on policy matters and monitors the performance of licensees. Key Functions - Determining tariffs for central generating stations and interstate transmission. - Regulating interstate transmission of electricity. - Facilitating development of power markets. - Promoting competition and efficiency in the electricity sector. - Adjudicating disputes involving generating companies and transmission licensees. Governance S...

Draft Indian Electricity Bill 2025 (Amendment)

  πŸ›️ Overview of the Draft Electricity (Amendment) Bill, 2025 The Electricity (Amendment) Bill, 2025 seeks to revise the Electricity Act, 2003 to address persistent challenges in India’s power sector and align it with the country’s developmental vision of “Viksit Bharat @ 2047.” The amendments aim to improve financial sustainability, promote clean energy, enhance regulatory accountability, and support industrial competitiveness. πŸ”‘ Key Objectives of the Amendment Ensure financial viability of distribution companies (DISCOMs) Promote cost-reflective tariffs Enable open access and competition Support clean energy transition Strengthen regulatory institutions Improve ease of living and doing business ⚡ Major Amendments and Their Implications 1. Financial Viability and Tariff Rationalization Cost-Reflective Tariffs : Regulatory Commissions must now determine tariffs that reflect the actual cost of electricity supply. This aligns with the Supreme Court’s 2025 judgment...

⚖️ What are called Regulatory Assets in the Power Sector?

Regulatory Assets (RAs) are deferred costs recorded by power distribution companies ( DISCOMs ) when their average cost of electricity supply (ACS) exceeds the revenue they collect (ARR) through tariffs. Instead of immediately increasing consumer tariffs to cover this gap, State Electricity Regulatory Commissions (SERCs) allow DISCOMs to recover the shortfall in the future—thus creating a regulatory asset . 🧾 How It Works (Example) Average Cost of Supply (ACS) : ₹7.20/unit Approved Tariff (ARR) : ₹7.00/unit Revenue Gap : ₹0.20/unit Units Sold : 10 billion Regulatory Asset Created : ₹2,000 crore This ₹2,000 crore becomes a regulatory asset , to be recovered later through future tariff hikes, often with interest. πŸ“‰ Why Are they Created? Non-cost reflective tariffs : Tariffs kept low for political or social reasons. Delayed subsidies : State governments delay payments for subsidized consumers. Fuel price shocks : Sudden increases in coal or gas prices. Operational ...

🌐 What is GIS Visualization?

GIS Visualization refers to the process of using Geographic Information Systems (GIS) to visually represent spatial data on maps. It allows users to analyze, interpret, and present geographic data in a way that reveals patterns, relationships, and trends. 🧭 Key Components of GIS Visualization 1. Spatial Data Layers Base Maps : Satellite imagery, terrain, street maps. Thematic Layers : Power lines, substations, solar parks, land use, population density, etc. 2. Interactive Mapping Zoom, pan, and query features. Real-time overlays (e.g., weather, grid load, solar irradiance). 3. Data Integration Combines geographic data with attribute data (e.g., capacity of a substation, status of a transmission line). Supports formats like shapefiles, GeoJSON, and raster data. 4. Analytical Tools Heatmaps : Show intensity (e.g., energy demand). Buffering : Analyze impact zones (e.g., around substations). Network Analysis : Optimize routes for transmission lines. ⚡ In the ...

⚡ What is “Plug and Play” in Solar Parks?

The “Plug and Play” model in the context of Solar Parks in India refers to a developer-friendly infrastructure setup where all the essential groundwork is already completed, allowing solar power developers to quickly install and operate their solar projects without facing delays related to land acquisition, permits, or infrastructure development. 🧩 Key Features of the Plug-and-Play Model ✅ 1. Pre-Developed Infrastructure Land : Identified, acquired, and leveled by the implementing agency. Transmission : Internal evacuation and grid connectivity are pre-established. Access Roads, Water, Drainage : All basic utilities are in place. Statutory Clearances : Environmental and regulatory approvals are pre-obtained. ✅ 2. Reduced Risk and Time Developers can focus solely on solar plant installation . Avoids delays due to land disputes, permits, or infrastructure bottlenecks. Faster commissioning and lower project costs . ✅ 3. Implemented Under MNRE’s Solar Park Scheme La...